In a bid to encourage banks to provide loans for education, the Reserve Bank of India RBI has declared that rescheduling the period of payment of education loans due to the inability of the borrower because of unemployment will not be treated as restructured accounts for computing NPAs. Banks can allow three rounds of extension periods, each not more than 6 months, during the entire lifecycle of the education loan, to be applicable only on unemployment/underemployment borrowers.
So, let’s discuss some questions related to this post:
Q1. According to RBI, which Loan will not be considered for computing NPAs?
Ans1. Rescheduled Education Loan